Trump Administration to Announce Plan to Shield Farmers From Trade War

Trading partners like China, Canada and the European Union are imposing stiff tariffs on Midwest farm products to retaliate for Trump tariffs on their countries.

Giesse, who grows wheat and corn near the western Kansas community of Larned, said he was "glad they are trying to be doing something, but I don't know when the day is over how much difference it is going to make".

Saying farmers want "trade, not aid" he claimed the administration's cross-border commercial bickering is forcing it 'to invoke a welfare policy for our farmers, which I'm sure is not what they wish'.

The exports have been a prime target of China and other countries that have retaliated against the series of tariffs Trump has imposed in recent months.

Farm groups generally have stood by Trump during the trade war although anxiety has begun to rise in farm country.

Trump is also set to meet Wednesday with European Commission President Jean-Claude Juncker.

The administration is expected to announce the aid package Tuesday, according to a source familiar with the plan, in the same week Trump is traveling to Missouri, Illinois and Iowa to speak with veterans and stump for candidates in this year's midterm elections. "This proposed action would only be a short-term attempt at masking the long-term damage caused by tariffs".

House Speaker Paul Ryan says lawmakers are making the case to President Donald Trump that tariffs are "not the way to go".

Officials said the plan would not require congressional approval and would come through the Commodity Credit Corp., a wing of the agency that addresses agricultural prices. Farmer organizations including the American Soybean Association have called the impacts of tariffs on agriculture "devastating". "Tariffs are taxes; consequently, the administration is raising taxes". Canada, China and Mexico are the three biggest buyers of US farm goods, accounting for 43 per cent of purchases in 2017.

Indeed, the plan magnified objections among manyRepublicans that the tariffs amount to taxes on American consumers.

The Trump administration has slapped tariffs on $34 billion in Chinese goods in a dispute over Beijing's high-tech industrial policies.

But it is a bit novel to hit farmers with one hand and then offer them compensation with the other, and it could even expose the U.S.to sanctions by the World Trade Organization for supplying the same sorts of illegal subsidies of which Trump likes to complain.

Trump has placed tariffs on imported steel and aluminum, saying they pose a threat to USA national security, an argument that allies such as the European Union and Canada reject.

"The president writes that the U.S.is a "'piggy bank' that's being robbed".

"Either a country which has treated the U.S. unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs".

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